Bitcoin (BTC) is currently facing significant resistance at the $106,061 mark, and traders are divided on its next move. While some analysts are bearish, predicting a sharp decline into the $90,000 range, others remain optimistic about BTC’s potential for a rally towards $120,000.
Popular crypto trader Justin Bennett, who has been closely monitoring Bitcoin’s price action, has turned bearish on BTC in the short term. In a recent update to his 115,700 followers on X (formerly Twitter), Bennett highlighted the resistance level at $106,061, stating that Bitcoin could experience a pullback after hitting this level.
“Hopefully, you’ve avoided getting bullish at resistance. Still looking for $98,600, followed by $91,800, and still short BTC,” Bennett said, signaling a cautious outlook for the cryptocurrency.
Bennett also pointed out the correlation between Bitcoin’s price movements and the performance of the S&P 500. According to him, both Bitcoin and the S&P 500 seem to be moving in sync, with a potential correction looming for the equities market. Bennett believes that once Bitcoin’s price action settles, it could mirror the range-bound movement of the S&P 500, awaiting a clear breakout or breakdown.
Bitcoin’s price action has become more closely tied to traditional markets, particularly the S&P 500. This correlation has prompted some traders to look to equities as a signal for Bitcoin’s next move. Bennett emphasized that observing the S&P 500 could provide crucial clues about Bitcoin’s near-term direction, noting how both markets have been trending in a similar range.
“If BTC’s price action has you confused, check the S&P for clues. Sweep one side, then sweep the other, and range until proven otherwise,” Bennett explained.
With equities approaching a range high, the potential for a broader market correction could further weigh on Bitcoin’s price in the short term.
While Bennett remains bearish, other traders like the pseudonymous Pentoshi are taking the opposite stance on Bitcoin. Pentoshi, who has a large following of 850,000 on X, is bullish on BTC’s prospects, despite the current resistance.
Pentoshi argues that Bitcoin has had multiple opportunities to sell off and has shown resilience at the $100,000 range. As a result, he believes that a move towards $120,000 is more likely in the near future.
“BTC [to] $120,000. Think it’s had every chance to sell off, and it hasn’t so higher first,” Pentoshi commented, highlighting the cryptocurrency’s ability to maintain support and avoid a significant downturn.
One of the key factors supporting Pentoshi’s optimistic view is the strong demand for Bitcoin exchange-traded funds (ETFs). According to him, both BTC and Ethereum (ETH) ETFs have been absorbing a significant amount of Bitcoin from the market, which could drive prices higher as demand continues to outpace supply.
“[On Thursday] the ETFs continued to buy, both BTC and ETH heavily. Eventually, sellers get absorbed, and people lose their coins. There are times when they are buying, and price isn’t going up, but eventually the demand overwhelms supply,” Pentoshi explained.
Despite periods of price stagnation, Pentoshi believes that the continued buying pressure from institutional investors will eventually push Bitcoin higher. He remains confident that, while the journey to $120,000 might not be a straight line, Bitcoin will eventually reach that target.
At the time of writing, Bitcoin is trading at $102,549, down 2.1% in the last 24 hours. As it faces resistance at the $106,000 level, Bitcoin’s next move remains uncertain, with traders holding differing opinions on the future trajectory.
Will Bitcoin experience a pullback into the $90,000 range, as Bennett predicts, or will institutional demand and support at the $100,000 level propel the cryptocurrency toward new highs?
While short-term price action remains volatile, the overall market sentiment for Bitcoin remains strong, and its relationship with traditional equities continues to play a significant role in shaping its price outlook.
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